Fresnillo shares fall as first quarter gold production dips and silver output jumps

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Fresnillo's shares have fallen with the price of gold in recent days (Source: Getty)

Courtney Goldsmith

Fresnillo's shares fell more than two per cent after it said gold output slowed in its first quarter production update.

For the first three months of 2017, the precious metals miner's gold production fell 3.3 per cent to 222,300 ounces, due to lower than expected ore grades at its Herradura mine and a one-off reduction of inventory levels. However, Fresnillo said it is on track to meet full-year guidance of 870,000 to 900,000 ounces.

Silver production jumped 10.7 per cent to 13.5m ounces, including its Silverstream mine. The miner said it is on track to deliver on its guidance of 58m to 61m ounces of silver for 2017.